AVZ Discussion 2022
- Thread starter GazDix
- Start date
TDITD
Top 20
I wrote an email :
FUUUUUUUUUUUUUUUUUUUCCCCCCCCCCCCCCCCCCCCCKKKKKKKKKKKKKKKKKKKKKKK sake man
But seriously, I did write an email.
We may have to all get together soon if they can't get their shit sorted and email bomb the bastards asking for them to sell it (after releasing the kraken of course- BFS). $10
ok fuck this off for a walk
Nigel has 50m reasons to salvage something from this.
He is not going to lie back and get shafted.
ATH MC was $4.7bn, same day LTR was $4.8bn ($2.19). Developers are well off ATH numbers. Temper expectations on what the company is actually worth.
Either they all sit down and nut out a deal so the MoM is happy to re issue a decree for the whole of 13359 or look for an exit strategy.
He is not going to lie back and get shafted.
ATH MC was $4.7bn, same day LTR was $4.8bn ($2.19). Developers are well off ATH numbers. Temper expectations on what the company is actually worth.
Either they all sit down and nut out a deal so the MoM is happy to re issue a decree for the whole of 13359 or look for an exit strategy.
Mate I think the only question that needs to be asked is what's our 50% worth to ctal? And right now.
Carlos Danger
Top 20
My reading on these bullet points is that they are the reasons given for cancelling the initial decrees and not a roadmap forward. What happens next is anyone's guess imo
The disagreements between shareholders are all because of Chinese bad actors. This is proven in the IGF report released in December. None of the delays are AVZ's fault and we control Dathcom.
Either this is the first step in awarding the whole tenement to Dathcom after ownership is sorted or we won't be mining it. So we will either sell or have to fight the DRC government in arbitration.
My take on this announcement:
Just like most shareholders, I was very frustrated due to the slow movement. But, I am actually much more positive now.
I hope lot of shareholders will be praising Nigel before the end of the month.
- The MoM decree announced by AVZ today and the ownership notification by MoP are the results of 9months negotiations between all the parties.
- The splitting of the 13359 is against the mining code, but DRC wants to follow their mining code and sort things out legally.
- The MoM decree issued in April 2022 by splitting the tenement was against the mining code, so they rescinded it.
- I expect a new decree soon from MoM issuing ML to all of 13359, in accordance with mining code.
- I think the AVZ response of consulting independent legal advisers is to make sure that the content in the decree is in line with BOD's understanding.
- Things are very likely to move fast from now.
Just like most shareholders, I was very frustrated due to the slow movement. But, I am actually much more positive now.
I hope lot of shareholders will be praising Nigel before the end of the month.
Scoota30
Regular
Since our ATH, there is a completed updated BFS, a 10mtpa study, a hydroxide facility study completed. Comparing LTR to this is stupid.
If the Chinese are to buy it off us and the project is a 1 year payback period, they can pay damn well what it's worth. No less than $2 per share and actual value more so around $4 per share ($10B USD). But if it's Zijin they can pay $12 because they are k*nts.
Everyone here would have no complaints with handing this shitshow over tomorrow for $2 ($5B USD) as we are all winners.
Sammy_da_Smile
Regular
A recent article that was sent to me from a mate. Quite interesting and worth reading from the link below as there are more embedded photos.
www.spiegel.de
The Democratic Republic of Congo is probably the largest lithium deposit in the world. The raw material is used to produce batteries and is indispensable for the fight against climate change. Now China wants to secure a share.
Heiner Hoffmann and Arsène Mpiana report from Manono, Democratic Republic of Congo (photos)
05/02/2023, 21:56 PM
The ceiling tiles in the community hall of Manono are rotten. There is a crack in the concrete floor, it runs across the room. There is no electricity, the organizers have set up a generator outside, inside large speakers and microphones are connected. But most of the participants of the event do not need them, they loudly express their concerns.
In the faded »Grande Salle« of Manono in the Democratic Republic of Congo, a two-day drive from the nearest major city, world politics is at stake. It's about who gets the mineral of the future on which they all live here: "The Chinese" or "those from the West"?
But beneath Manono's Earth is also, according to geologists, possibly the largest lithium deposit in the world. Untouched. In old documents of the former Belgian mine operators there is still a geological study, it dates back to 1952. In a half-sentence there is talk of »spodumène«, the lithium-containing mineral. It was a thorn in the side of the miners of that time, a waste product. Today it is one of the most sought-after raw materials in the world, experts assume that demand will far exceed supply in the future.
Lithium is used to power batteries, even for electric cars, without lithium the energy transition will hardly be possible. The price of lithium has exploded in the past two years. "Manono can play a significant role in meeting the global demand for lithium," said Nigel Ferguson, CEO of Australian mining company AVZ Minerals. Some even say that whoever controls Manono could ultimately influence the world market price.
The inhabitants of Manono could therefore live in wealth, people could splash around again in the old swimming pool, the »Grande Salle« could again deserve the name »Grande«. But because this is not the case, they have now gathered in the community hall and let their anger run wild. "Why hasn't anything happened?" shouts a local resident. "We want work," says another indignantly. Outside, in front of the community hall, large posters are hung, on the left side is written »Manono yesterday«, including pictures of dilapidated infrastructure and poor people. On the right side is written »Manono tomorrow«, two-lane roads, fresh water from the tap, happy residents.
Balthazar Tshiseke sits at the front, facing the angry crowd. He wears a white T-shirt and a white baseball cap, also printed here »Manono yesterday, Manono tomorrow«. Tshiseke heads the joint venture Dathcom, which has actually been extracting lithium from the ground here for months and turning it into money. He gets his salary from AVZ Minerals, the Australians who hold the majority stake in Dathcom. Those gathered call him "Directeur", the director. Tshiseke patiently listens to the angry speeches, nodding from time to time, then slowly rising. It is not easy for him, his left leg has been paralyzed since childhood after a polio disease. But his voice is firm and firm when he says, "The government just doesn't give us the mining license. We are not allowed to dismantle anything yet."
Balthazar Tshiseke (at the microphone) with his colleague Steve Hodgson in the community hall of Manono
Photo: Arsene Mpiana / DER SPIEGEL
Then he describes the major lines of conflict, it is very complicated, AVZ is hopelessly in the clinch with its joint venture partners. On the one hand, there is the Chinese businessman Cong Maohuai, known in Congo as Simon Cong. He is considered to be politically well wired, both in Beijing and in Kinshasa. Cong has his fingers in the game in many dubious deals in the Central African country, he is an extremely controversial figure. Cong's company Dathomir held the majority stake in Manono's concession until 2017, which soon turned out to be a goldmine. Then came the Australians from AVZ, they bought into the lithium deposit from Cong and secured control of the valuable business.
AVZ brought large equipment to Manono, they drilled a total of 42 kilometers of holes in the ground, and almost everywhere they came across lithium-rich rock, sometimes up to 350 meters thick. In 2019, they published the result of the soil samples. "After that, all hell fell on us," says AVZ boss Nigel Ferguson. "Every single Chinese company in the lithium sector has called us."
Residents at artisanal mining: They continue to remove tin in the region
Photo: Arsene Mpiana / DER SPIEGEL
China is the largest player in the lithium business. The company CATL is the world market leader in battery production for electric cars, has just built a huge new factory in Thuringia, the first outside China, here too the lithium from Manono is urgently needed. It is no secret that Beijing would also like to control access to the raw material itself, and Manono now offers a great opportunity for this.
The advances of the Chinese were initially actually successful. Lithium mining is expensive, so Australians need a lot of money. In 2021, they concluded a deal with a subsidiary of the battery giant CATL: In return for 240 million US dollars in start-up financing, the Chinese company is to receive 24 percent of the shares in the lithium joint venture. At that time, no one was worried, there was talk of "our friends from China". The Australians have also already signed three major supply contracts with Chinese companies, and not a ton of Manono has yet been commercially mined.
"We would have liked to work with European or American companies, but unfortunately they are reluctant to invest in countries like Congo," says AVZ CEO Nigel Ferguson. Europe and the US are increasingly worried about losing influence in Africa. The West does not want to become dependent on Chinese raw material extraction. But in Congo, investments are delicate, both economically and ethically. Thus, "the West" is left out.
For AVZ, the trouble soon started. Simon Cong, the Chinese director of Dathomir, suddenly wanted some of his shares back. He felt pulled over the table. And there was also trouble from other sides. The joint venture also includes the Congolese mining company Cominière, which is controlled by the government. This is to ensure that the Congo also gets something. However, Cominière surprisingly negotiated a deal with the state-owned Chinese mining company Zijin, selling its subsidiary 15 percent of Manono's shares. The Australians felt ignored, challenged the transaction, the case now ends up in an international arbitration court.
Suddenly, AVZ is surrounded on three sides by players from China: Simon Cong from Dathomir, CATL and Zijin. In a press release , the state-owned company Zijin is already gloating that AVZ will ultimately lose control of Manono. Chinese media are now talking about a "power struggle between Chinese actors," as if Australians no longer played a role. China's President Xi Jinping has issued the directive on critical raw materials: Go out and get what you can get. And that's exactly what we're experiencing right now," says AVZ boss Ferguson.
In the Grande Salle of Manono, they have now arrived at big politics. "It's about who is in charge here, those from the West or the Chinese," shouts one participant in the meeting. "We don't want the Chinese!" several others say indignantly. Balthazar Tshiseke nods in satisfaction, the event becomes a success for him, the residents of Manono gather behind the Australian company. But it is only a small victory, because in the end the government in Kinshasa has the upper hand. And there Beijing is a welcome partner that asks few questions and does not give speeches about fighting corruption and sustainability.
AVZ wants to extract 700,000 tons of spodumene per year, test drilling is still underway Photo
: Arsene Mpiana / DER SPIEGEL
Steve Hodgson is a man of order. When he turns off Manono's damaged dirt roads in the white country cruiser, he flashes – even if there is no other vehicle nearby. He makes sure that AVZ cars are always parked backwards and that no one runs the engine. Hodgson is a geologist responsible for the mine on site, monitors the latest test drillings and keeps an eye on the budget.
Next to him it rattles loudly, boring rods are driven into the earth, a total of almost 600 meters deep. Five centimeters thick stone columns are lined up on a tray, the results of the test drilling. Hodgson wipes with a wet cloth over the dusty rock, it begins to shine. With his index finger he taps on a whitish spot, an embedded crystal. "That's the lithium," explains the geologist, the column is crisscrossed by it.
Steve Hodgson and his colleagues sort rock samples in Manono
Photo: Arsene Mpiana / DER SPIEGEL
Manono is believed to be the largest lithium deposit in the world
Photo: Arsene Mpiana / DER SPIEGEL
In order to obtain the coveted raw material, the soil must be dredged over a large area, then the rock is ground and in the end so-called SC6 is extracted from it, the substance contains six percent pure lithium oxide, so it comes to the world market. AVZ wants to extract 700,000 tons per year, from the beginning of 2021 the share price went through the roof. But there is little left of it: The company has suspended trading on the Australian stock exchange because of the disputes in the Congo. According to media reports, numerous investors are planning a class action lawsuit against AVZ because the company did not inform about the risks in good time. Whether the mining license will ever be granted seems more than questionable. The Congolese mining minister did not respond to a request from SPIEGEL. The Australians only have perseverance slogans to keep shareholders happy.
Steve Hodgson parks his pickup truck at the top of the camp, where the mining company has set up camp, right next to the deep craters of the old tin mine. Dozens of men in blue overalls hammer, saw and lay cables, they build small one-story stone houses, shelters for the miners. "Everything should be ready when we finally have the license," says Hodgson. As if they needed something to hold on to, as if walls would do something against political castings.
Aerial view of the hand-dug mines
Photo: DER SPIEGEL
Hodgson points with his right hand to a group of men standing in the lunar landscape with shovels and sieves. "There they are again," he murmurs, "we have to find a solution." They are the inhabitants of Manono, who are trying their hand at artisanal mining, still digging for tin in the old holes, which can be sold for a few euros a day. The Australians have to get rid of them at some point, as heavy excavators and caterpillars are supposed to drive up here. Recently, they had already tried, even hiring security forces to maintain order. But the people in Manono are dependent on the income from tin extraction, the mood threatened to change. Now the mine operators want to allocate their own area to the residents.
A few weeks ago there was a demonstration in Manono, organized by young people. They called for the construction of a battery factory in the city so that the raw material is not only exported, but the added value takes place locally. In fact, the Congolese government has big plans, even creating a center for battery production at a university. But for the time being, it is still a question of who controls the largest lithium deposit in the world.
Steve Hodgson is now standing in front of the police station, together with a lawyer. He and his colleagues have confiscated a large excavator that was illegally travelling in the concession, allegedly to collect gravel for road construction. It quickly turned out that the heavy vehicle was apparently on the road on behalf of a Chinese company. A test of power, the AVZ people believe. The driver was arrested directly; a small victory, but some time later he is released. The Chinese always find a solution.
Lithium in der Demokratischen Republik Kongo: Der Kampf um den Rohstoff der Zukunft
In der Demokratischen Republik Kongo liegt das wohl größte Lithiumvorkommen der Welt. Mit dem Rohstoff werden Batterien hergestellt, für den Kampf gegen den Klimawandel ist er unabdingbar. Jetzt will sich China einen Anteil sichern.
This is the raw material of the future – who will lift the treasure?
The Democratic Republic of Congo is probably the largest lithium deposit in the world. The raw material is used to produce batteries and is indispensable for the fight against climate change. Now China wants to secure a share.
Heiner Hoffmann and Arsène Mpiana report from Manono, Democratic Republic of Congo (photos)
05/02/2023, 21:56 PM
The ceiling tiles in the community hall of Manono are rotten. There is a crack in the concrete floor, it runs across the room. There is no electricity, the organizers have set up a generator outside, inside large speakers and microphones are connected. But most of the participants of the event do not need them, they loudly express their concerns.
In the faded »Grande Salle« of Manono in the Democratic Republic of Congo, a two-day drive from the nearest major city, world politics is at stake. It's about who gets the mineral of the future on which they all live here: "The Chinese" or "those from the West"?
But beneath Manono's Earth is also, according to geologists, possibly the largest lithium deposit in the world. Untouched. In old documents of the former Belgian mine operators there is still a geological study, it dates back to 1952. In a half-sentence there is talk of »spodumène«, the lithium-containing mineral. It was a thorn in the side of the miners of that time, a waste product. Today it is one of the most sought-after raw materials in the world, experts assume that demand will far exceed supply in the future.
Lithium is used to power batteries, even for electric cars, without lithium the energy transition will hardly be possible. The price of lithium has exploded in the past two years. "Manono can play a significant role in meeting the global demand for lithium," said Nigel Ferguson, CEO of Australian mining company AVZ Minerals. Some even say that whoever controls Manono could ultimately influence the world market price.
The inhabitants of Manono could therefore live in wealth, people could splash around again in the old swimming pool, the »Grande Salle« could again deserve the name »Grande«. But because this is not the case, they have now gathered in the community hall and let their anger run wild. "Why hasn't anything happened?" shouts a local resident. "We want work," says another indignantly. Outside, in front of the community hall, large posters are hung, on the left side is written »Manono yesterday«, including pictures of dilapidated infrastructure and poor people. On the right side is written »Manono tomorrow«, two-lane roads, fresh water from the tap, happy residents.
Balthazar Tshiseke sits at the front, facing the angry crowd. He wears a white T-shirt and a white baseball cap, also printed here »Manono yesterday, Manono tomorrow«. Tshiseke heads the joint venture Dathcom, which has actually been extracting lithium from the ground here for months and turning it into money. He gets his salary from AVZ Minerals, the Australians who hold the majority stake in Dathcom. Those gathered call him "Directeur", the director. Tshiseke patiently listens to the angry speeches, nodding from time to time, then slowly rising. It is not easy for him, his left leg has been paralyzed since childhood after a polio disease. But his voice is firm and firm when he says, "The government just doesn't give us the mining license. We are not allowed to dismantle anything yet."
Balthazar Tshiseke (at the microphone) with his colleague Steve Hodgson in the community hall of Manono
Photo: Arsene Mpiana / DER SPIEGEL
Then he describes the major lines of conflict, it is very complicated, AVZ is hopelessly in the clinch with its joint venture partners. On the one hand, there is the Chinese businessman Cong Maohuai, known in Congo as Simon Cong. He is considered to be politically well wired, both in Beijing and in Kinshasa. Cong has his fingers in the game in many dubious deals in the Central African country, he is an extremely controversial figure. Cong's company Dathomir held the majority stake in Manono's concession until 2017, which soon turned out to be a goldmine. Then came the Australians from AVZ, they bought into the lithium deposit from Cong and secured control of the valuable business.
AVZ brought large equipment to Manono, they drilled a total of 42 kilometers of holes in the ground, and almost everywhere they came across lithium-rich rock, sometimes up to 350 meters thick. In 2019, they published the result of the soil samples. "After that, all hell fell on us," says AVZ boss Nigel Ferguson. "Every single Chinese company in the lithium sector has called us."
Residents at artisanal mining: They continue to remove tin in the region
Photo: Arsene Mpiana / DER SPIEGEL
China is the largest player in the lithium business. The company CATL is the world market leader in battery production for electric cars, has just built a huge new factory in Thuringia, the first outside China, here too the lithium from Manono is urgently needed. It is no secret that Beijing would also like to control access to the raw material itself, and Manono now offers a great opportunity for this.
The advances of the Chinese were initially actually successful. Lithium mining is expensive, so Australians need a lot of money. In 2021, they concluded a deal with a subsidiary of the battery giant CATL: In return for 240 million US dollars in start-up financing, the Chinese company is to receive 24 percent of the shares in the lithium joint venture. At that time, no one was worried, there was talk of "our friends from China". The Australians have also already signed three major supply contracts with Chinese companies, and not a ton of Manono has yet been commercially mined.
"We would have liked to work with European or American companies, but unfortunately they are reluctant to invest in countries like Congo," says AVZ CEO Nigel Ferguson. Europe and the US are increasingly worried about losing influence in Africa. The West does not want to become dependent on Chinese raw material extraction. But in Congo, investments are delicate, both economically and ethically. Thus, "the West" is left out.
For AVZ, the trouble soon started. Simon Cong, the Chinese director of Dathomir, suddenly wanted some of his shares back. He felt pulled over the table. And there was also trouble from other sides. The joint venture also includes the Congolese mining company Cominière, which is controlled by the government. This is to ensure that the Congo also gets something. However, Cominière surprisingly negotiated a deal with the state-owned Chinese mining company Zijin, selling its subsidiary 15 percent of Manono's shares. The Australians felt ignored, challenged the transaction, the case now ends up in an international arbitration court.
Suddenly, AVZ is surrounded on three sides by players from China: Simon Cong from Dathomir, CATL and Zijin. In a press release , the state-owned company Zijin is already gloating that AVZ will ultimately lose control of Manono. Chinese media are now talking about a "power struggle between Chinese actors," as if Australians no longer played a role. China's President Xi Jinping has issued the directive on critical raw materials: Go out and get what you can get. And that's exactly what we're experiencing right now," says AVZ boss Ferguson.
In the Grande Salle of Manono, they have now arrived at big politics. "It's about who is in charge here, those from the West or the Chinese," shouts one participant in the meeting. "We don't want the Chinese!" several others say indignantly. Balthazar Tshiseke nods in satisfaction, the event becomes a success for him, the residents of Manono gather behind the Australian company. But it is only a small victory, because in the end the government in Kinshasa has the upper hand. And there Beijing is a welcome partner that asks few questions and does not give speeches about fighting corruption and sustainability.
AVZ wants to extract 700,000 tons of spodumene per year, test drilling is still underway Photo
: Arsene Mpiana / DER SPIEGEL
Steve Hodgson is a man of order. When he turns off Manono's damaged dirt roads in the white country cruiser, he flashes – even if there is no other vehicle nearby. He makes sure that AVZ cars are always parked backwards and that no one runs the engine. Hodgson is a geologist responsible for the mine on site, monitors the latest test drillings and keeps an eye on the budget.
Next to him it rattles loudly, boring rods are driven into the earth, a total of almost 600 meters deep. Five centimeters thick stone columns are lined up on a tray, the results of the test drilling. Hodgson wipes with a wet cloth over the dusty rock, it begins to shine. With his index finger he taps on a whitish spot, an embedded crystal. "That's the lithium," explains the geologist, the column is crisscrossed by it.
Steve Hodgson and his colleagues sort rock samples in Manono
Photo: Arsene Mpiana / DER SPIEGEL
Manono is believed to be the largest lithium deposit in the world
Photo: Arsene Mpiana / DER SPIEGEL
In order to obtain the coveted raw material, the soil must be dredged over a large area, then the rock is ground and in the end so-called SC6 is extracted from it, the substance contains six percent pure lithium oxide, so it comes to the world market. AVZ wants to extract 700,000 tons per year, from the beginning of 2021 the share price went through the roof. But there is little left of it: The company has suspended trading on the Australian stock exchange because of the disputes in the Congo. According to media reports, numerous investors are planning a class action lawsuit against AVZ because the company did not inform about the risks in good time. Whether the mining license will ever be granted seems more than questionable. The Congolese mining minister did not respond to a request from SPIEGEL. The Australians only have perseverance slogans to keep shareholders happy.
Steve Hodgson parks his pickup truck at the top of the camp, where the mining company has set up camp, right next to the deep craters of the old tin mine. Dozens of men in blue overalls hammer, saw and lay cables, they build small one-story stone houses, shelters for the miners. "Everything should be ready when we finally have the license," says Hodgson. As if they needed something to hold on to, as if walls would do something against political castings.
Aerial view of the hand-dug mines
Photo: DER SPIEGEL
Hodgson points with his right hand to a group of men standing in the lunar landscape with shovels and sieves. "There they are again," he murmurs, "we have to find a solution." They are the inhabitants of Manono, who are trying their hand at artisanal mining, still digging for tin in the old holes, which can be sold for a few euros a day. The Australians have to get rid of them at some point, as heavy excavators and caterpillars are supposed to drive up here. Recently, they had already tried, even hiring security forces to maintain order. But the people in Manono are dependent on the income from tin extraction, the mood threatened to change. Now the mine operators want to allocate their own area to the residents.
A few weeks ago there was a demonstration in Manono, organized by young people. They called for the construction of a battery factory in the city so that the raw material is not only exported, but the added value takes place locally. In fact, the Congolese government has big plans, even creating a center for battery production at a university. But for the time being, it is still a question of who controls the largest lithium deposit in the world.
Steve Hodgson is now standing in front of the police station, together with a lawyer. He and his colleagues have confiscated a large excavator that was illegally travelling in the concession, allegedly to collect gravel for road construction. It quickly turned out that the heavy vehicle was apparently on the road on behalf of a Chinese company. A test of power, the AVZ people believe. The driver was arrested directly; a small victory, but some time later he is released. The Chinese always find a solution.
Give it a week but then would be in favour of each individual writing an e mail to the company all with a unified view whether it be to sell with a minimum figure or remove suspension so we can trade. Everyone can say how many shares they hold.
I'm just sick of the delay and uncertainty with no end in site.
Just a thought, happy to be shot down in flames but am over trying to read between the lines of overseas contributors, announcements and posters. I invested to make some money, not be stuck in quicksand not knowing if l am going to sink or get rescued.
Deboss is probably about right, understand limited info causes much stress for many investors, and allows imaginations to run wild, who knows maybe for good reason just not sure myself, we will once again have to wait and see where the cards fall.
No point in jumping off a bridge at this stage IMO, not good for your health
, who knows with such limited information maybe when more detail comes to light we will get a clearer picture than those suggesting "it's all over red rover" this is all those anti AVZ trolls have ever said anyway nothing new from them.Those going for a walk, having a VB or something a little stronger
to drink, etc will probably fair best, good luck all don't get sucked into those panicking, there will be plenty of time for that if this doesn't become clear over the coming weeks.ps some very good posts by the way here and over in 'crazy land' to be read by those with mature heads on their shoulders, usual fools coming out of the swamp preaching their so-called unbias crap, don't be fooled so easily at this by some of the garbage posted. Not wanting to make excuses for NF, but 4me Nigel's response is understandable at this initial point to this undertaking by the DRC gov, however, let's see what unfolds and then decide where we lie.
These are just my early thoughts, I tend to think this can go both our way or possibly not, it's just way too early with too little intel to be sure of anything.
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Appreciate you both sharing your reasoned/considered views on this.My take on this announcement:
We also need to look at this from DRC perspective. This is their prized asset and they don't want any more legal issues. They also want to show the world that things are going to be done legally. Things got delayed, but a good outcome within the legal framework will be a very good thing for DRC and AVZ.
- The MoM decree announced by AVZ today and the ownership notification by MoP are the results of 9months negotiations between all the parties.
- The splitting of the 13359 is against the mining code, but DRC wants to follow their mining code and sort things out legally.
- The MoM decree issued in April 2022 by splitting the tenement was against the mining code, so they rescinded it.
- I expect a new decree soon from MoM issuing ML to all of 13359, in accordance with mining code.
- I think the AVZ response of consulting independent legal advisers is to make sure that the content in the decree is in line with BOD's understanding.
- Things are very likely to move fast from now.
Just like most shareholders, I was very frustrated due to the slow movement. But, I am actually much more positive now.
I hope lot of shareholders will be praising Nigel before the end of the month.
The situation remains "interesting"
Further to this, if the favourable opinions still stand, could there be a scenario whereby we are guaranteed the ML for the entirety of 13359 within 30 days if not issued?My take on this announcement:
We also need to look at this from DRC perspective. This is their prized asset and they don't want any more legal issues. They also want to show the world that things are going to be done legally. Things got delayed, but a good outcome within the legal framework will be a very good thing for DRC and AVZ.
- The MoM decree announced by AVZ today and the ownership notification by MoP are the results of 9months negotiations between all the parties.
- The splitting of the 13359 is against the mining code, but DRC wants to follow their mining code and sort things out legally.
- The MoM decree issued in April 2022 by splitting the tenement was against the mining code, so they rescinded it.
- I expect a new decree soon from MoM issuing ML to all of 13359, in accordance with mining code.
- I think the AVZ response of consulting independent legal advisers is to make sure that the content in the decree is in line with BOD's understanding.
- Things are very likely to move fast from now.
Just like most shareholders, I was very frustrated due to the slow movement. But, I am actually much more positive now.
I hope lot of shareholders will be praising Nigel before the end of the month.
Samus
Top 20
"The securities of AVZ Minerals Limited (‘AVZ’) will be suspended from quotation immediately under Listing Rule 17.2, at the request of AVZ, pending the release of an announcement regarding its mining and exploration rights for the Manono Lithium and Tin Project."
I will be dumbfounded if the above still stands with the ASX.
It'll be an interesting few days that's for sure, starting with whether or not Nigel still speaks at 121 this evening and then if the DRC delegation also in South Africa will entertain a meeting with our BOD or not.
Hopefully we can have some form of clarity very quickly as opposed to the wishy washy shit we've endured over the past 9+ months.
BoD need to come to the table with something positive or the entire suspension with a view to retaining shareholder value and burning the shorters has been a waste of time.
I will be dumbfounded if the above still stands with the ASX.
It'll be an interesting few days that's for sure, starting with whether or not Nigel still speaks at 121 this evening and then if the DRC delegation also in South Africa will entertain a meeting with our BOD or not.
Hopefully we can have some form of clarity very quickly as opposed to the wishy washy shit we've endured over the past 9+ months.
BoD need to come to the table with something positive or the entire suspension with a view to retaining shareholder value and burning the shorters has been a waste of time.
Aren't AJN and Klaus out of picture now since 13359 is not splitting and their application is now void.
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Winenut
Go AVZ!
My take on this announcement:
We also need to look at this from DRC perspective. This is their prized asset and they don't want any more legal issues. They also want to show the world that things are going to be done legally. Things got delayed, but a good outcome within the legal framework will be a very good thing for DRC and AVZ.
- The MoM decree announced by AVZ today and the ownership notification by MoP are the results of 9months negotiations between all the parties.
- The splitting of the 13359 is against the mining code, but DRC wants to follow their mining code and sort things out legally.
- The MoM decree issued in April 2022 by splitting the tenement was against the mining code, so they rescinded it.
- I expect a new decree soon from MoM issuing ML to all of 13359, in accordance with mining code.
- I think the AVZ response of consulting independent legal advisers is to make sure that the content in the decree is in line with BOD's understanding.
- Things are very likely to move fast from now.
Just like most shareholders, I was very frustrated due to the slow movement. But, I am actually much more positive now.
I hope lot of shareholders will be praising Nigel before the end of the month.
I saw some fairies at the bottom of the garden.....
Also is Zijin out officially?
TDITD
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I had to laugh when he said temper expectations. You are spot on in that they will pay what its worth. That is around the BFS price not DFS
Min $2
Zijin $12 kunts
A recent article that was sent to me from a mate. Quite interesting and worth reading from the link below as there are more embedded photos.
Lithium in der Demokratischen Republik Kongo: Der Kampf um den Rohstoff der Zukunft
In der Demokratischen Republik Kongo liegt das wohl größte Lithiumvorkommen der Welt. Mit dem Rohstoff werden Batterien hergestellt, für den Kampf gegen den Klimawandel ist er unabdingbar. Jetzt will sich China einen Anteil sichern.
This is the raw material of the future – who will lift the treasure?
The Democratic Republic of Congo is probably the largest lithium deposit in the world. The raw material is used to produce batteries and is indispensable for the fight against climate change. Now China wants to secure a share.
Heiner Hoffmann and Arsène Mpiana report from Manono, Democratic Republic of Congo (photos)
05/02/2023, 21:56 PM
The ceiling tiles in the community hall of Manono are rotten. There is a crack in the concrete floor, it runs across the room. There is no electricity, the organizers have set up a generator outside, inside large speakers and microphones are connected. But most of the participants of the event do not need them, they loudly express their concerns.
In the faded »Grande Salle« of Manono in the Democratic Republic of Congo, a two-day drive from the nearest major city, world politics is at stake. It's about who gets the mineral of the future on which they all live here: "The Chinese" or "those from the West"?
But beneath Manono's Earth is also, according to geologists, possibly the largest lithium deposit in the world. Untouched. In old documents of the former Belgian mine operators there is still a geological study, it dates back to 1952. In a half-sentence there is talk of »spodumène«, the lithium-containing mineral. It was a thorn in the side of the miners of that time, a waste product. Today it is one of the most sought-after raw materials in the world, experts assume that demand will far exceed supply in the future.
Lithium is used to power batteries, even for electric cars, without lithium the energy transition will hardly be possible. The price of lithium has exploded in the past two years. "Manono can play a significant role in meeting the global demand for lithium," said Nigel Ferguson, CEO of Australian mining company AVZ Minerals. Some even say that whoever controls Manono could ultimately influence the world market price.
The inhabitants of Manono could therefore live in wealth, people could splash around again in the old swimming pool, the »Grande Salle« could again deserve the name »Grande«. But because this is not the case, they have now gathered in the community hall and let their anger run wild. "Why hasn't anything happened?" shouts a local resident. "We want work," says another indignantly. Outside, in front of the community hall, large posters are hung, on the left side is written »Manono yesterday«, including pictures of dilapidated infrastructure and poor people. On the right side is written »Manono tomorrow«, two-lane roads, fresh water from the tap, happy residents.
Balthazar Tshiseke sits at the front, facing the angry crowd. He wears a white T-shirt and a white baseball cap, also printed here »Manono yesterday, Manono tomorrow«. Tshiseke heads the joint venture Dathcom, which has actually been extracting lithium from the ground here for months and turning it into money. He gets his salary from AVZ Minerals, the Australians who hold the majority stake in Dathcom. Those gathered call him "Directeur", the director. Tshiseke patiently listens to the angry speeches, nodding from time to time, then slowly rising. It is not easy for him, his left leg has been paralyzed since childhood after a polio disease. But his voice is firm and firm when he says, "The government just doesn't give us the mining license. We are not allowed to dismantle anything yet."
Balthazar Tshiseke (at the microphone) with his colleague Steve Hodgson in the community hall of Manono
Photo: Arsene Mpiana / DER SPIEGEL
Then he describes the major lines of conflict, it is very complicated, AVZ is hopelessly in the clinch with its joint venture partners. On the one hand, there is the Chinese businessman Cong Maohuai, known in Congo as Simon Cong. He is considered to be politically well wired, both in Beijing and in Kinshasa. Cong has his fingers in the game in many dubious deals in the Central African country, he is an extremely controversial figure. Cong's company Dathomir held the majority stake in Manono's concession until 2017, which soon turned out to be a goldmine. Then came the Australians from AVZ, they bought into the lithium deposit from Cong and secured control of the valuable business.
AVZ brought large equipment to Manono, they drilled a total of 42 kilometers of holes in the ground, and almost everywhere they came across lithium-rich rock, sometimes up to 350 meters thick. In 2019, they published the result of the soil samples. "After that, all hell fell on us," says AVZ boss Nigel Ferguson. "Every single Chinese company in the lithium sector has called us."
Residents at artisanal mining: They continue to remove tin in the region
Photo: Arsene Mpiana / DER SPIEGEL
China is the largest player in the lithium business. The company CATL is the world market leader in battery production for electric cars, has just built a huge new factory in Thuringia, the first outside China, here too the lithium from Manono is urgently needed. It is no secret that Beijing would also like to control access to the raw material itself, and Manono now offers a great opportunity for this.
The advances of the Chinese were initially actually successful. Lithium mining is expensive, so Australians need a lot of money. In 2021, they concluded a deal with a subsidiary of the battery giant CATL: In return for 240 million US dollars in start-up financing, the Chinese company is to receive 24 percent of the shares in the lithium joint venture. At that time, no one was worried, there was talk of "our friends from China". The Australians have also already signed three major supply contracts with Chinese companies, and not a ton of Manono has yet been commercially mined.
"We would have liked to work with European or American companies, but unfortunately they are reluctant to invest in countries like Congo," says AVZ CEO Nigel Ferguson. Europe and the US are increasingly worried about losing influence in Africa. The West does not want to become dependent on Chinese raw material extraction. But in Congo, investments are delicate, both economically and ethically. Thus, "the West" is left out.
For AVZ, the trouble soon started. Simon Cong, the Chinese director of Dathomir, suddenly wanted some of his shares back. He felt pulled over the table. And there was also trouble from other sides. The joint venture also includes the Congolese mining company Cominière, which is controlled by the government. This is to ensure that the Congo also gets something. However, Cominière surprisingly negotiated a deal with the state-owned Chinese mining company Zijin, selling its subsidiary 15 percent of Manono's shares. The Australians felt ignored, challenged the transaction, the case now ends up in an international arbitration court.
Suddenly, AVZ is surrounded on three sides by players from China: Simon Cong from Dathomir, CATL and Zijin. In a press release , the state-owned company Zijin is already gloating that AVZ will ultimately lose control of Manono. Chinese media are now talking about a "power struggle between Chinese actors," as if Australians no longer played a role. China's President Xi Jinping has issued the directive on critical raw materials: Go out and get what you can get. And that's exactly what we're experiencing right now," says AVZ boss Ferguson.
In the Grande Salle of Manono, they have now arrived at big politics. "It's about who is in charge here, those from the West or the Chinese," shouts one participant in the meeting. "We don't want the Chinese!" several others say indignantly. Balthazar Tshiseke nods in satisfaction, the event becomes a success for him, the residents of Manono gather behind the Australian company. But it is only a small victory, because in the end the government in Kinshasa has the upper hand. And there Beijing is a welcome partner that asks few questions and does not give speeches about fighting corruption and sustainability.
AVZ wants to extract 700,000 tons of spodumene per year, test drilling is still underway Photo
: Arsene Mpiana / DER SPIEGEL
Steve Hodgson is a man of order. When he turns off Manono's damaged dirt roads in the white country cruiser, he flashes – even if there is no other vehicle nearby. He makes sure that AVZ cars are always parked backwards and that no one runs the engine. Hodgson is a geologist responsible for the mine on site, monitors the latest test drillings and keeps an eye on the budget.
Next to him it rattles loudly, boring rods are driven into the earth, a total of almost 600 meters deep. Five centimeters thick stone columns are lined up on a tray, the results of the test drilling. Hodgson wipes with a wet cloth over the dusty rock, it begins to shine. With his index finger he taps on a whitish spot, an embedded crystal. "That's the lithium," explains the geologist, the column is crisscrossed by it.
Steve Hodgson and his colleagues sort rock samples in Manono
Photo: Arsene Mpiana / DER SPIEGEL
Manono is believed to be the largest lithium deposit in the world
Photo: Arsene Mpiana / DER SPIEGEL
In order to obtain the coveted raw material, the soil must be dredged over a large area, then the rock is ground and in the end so-called SC6 is extracted from it, the substance contains six percent pure lithium oxide, so it comes to the world market. AVZ wants to extract 700,000 tons per year, from the beginning of 2021 the share price went through the roof. But there is little left of it: The company has suspended trading on the Australian stock exchange because of the disputes in the Congo. According to media reports, numerous investors are planning a class action lawsuit against AVZ because the company did not inform about the risks in good time. Whether the mining license will ever be granted seems more than questionable. The Congolese mining minister did not respond to a request from SPIEGEL. The Australians only have perseverance slogans to keep shareholders happy.
Steve Hodgson parks his pickup truck at the top of the camp, where the mining company has set up camp, right next to the deep craters of the old tin mine. Dozens of men in blue overalls hammer, saw and lay cables, they build small one-story stone houses, shelters for the miners. "Everything should be ready when we finally have the license," says Hodgson. As if they needed something to hold on to, as if walls would do something against political castings.
Aerial view of the hand-dug mines
Photo: DER SPIEGEL
Hodgson points with his right hand to a group of men standing in the lunar landscape with shovels and sieves. "There they are again," he murmurs, "we have to find a solution." They are the inhabitants of Manono, who are trying their hand at artisanal mining, still digging for tin in the old holes, which can be sold for a few euros a day. The Australians have to get rid of them at some point, as heavy excavators and caterpillars are supposed to drive up here. Recently, they had already tried, even hiring security forces to maintain order. But the people in Manono are dependent on the income from tin extraction, the mood threatened to change. Now the mine operators want to allocate their own area to the residents.
A few weeks ago there was a demonstration in Manono, organized by young people. They called for the construction of a battery factory in the city so that the raw material is not only exported, but the added value takes place locally. In fact, the Congolese government has big plans, even creating a center for battery production at a university. But for the time being, it is still a question of who controls the largest lithium deposit in the world.
Steve Hodgson is now standing in front of the police station, together with a lawyer. He and his colleagues have confiscated a large excavator that was illegally travelling in the concession, allegedly to collect gravel for road construction. It quickly turned out that the heavy vehicle was apparently on the road on behalf of a Chinese company. A test of power, the AVZ people believe. The driver was arrested directly; a small victory, but some time later he is released. The Chinese always find a solution.
Is this the Steven Hodgson in these pictures? (And not Michael Hughes as peopler originally thought)
Steven Hodgson
Mr Hodgson has 20 years of extensive experience in the mining industry, the last 8 years as mining consultant working for clients across the globe in multiple commodities. Mr Hodgson is experienced in data management, exploration, resource estimation, feasibility study and legal compliance adhering to international mining codes. Mr Hodgson holds a Bachelor of Applied Science degree in Geology from Curtin University in Western Australia, and a Graduate Diploma in Information Systems from Curtin University Business School. He is a member of the Australian Institute of Geoscientists and Australasian Institute of Mining and Metallurgy.
TDITD
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went for a bike ride instead had too much ummm pent up 'energy' for a walk
I wonder if we are getting closer and as we have been 'close' apparently in the past we have a spanner thrown in ?
It did seem like we were getting closer, then bam this, very similar to previous times.
Either way enough is enough surely.
The DRC either want to mine this so clear out the corrupt paperwork and let us mine, or they want some dirty bribes, in which case China can damn well pay what we want, jesus christ this bloody mine is worth much more than just the ore to them Aswell remember its strategic.
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